By having one credit card People may be more inclined to spend more money and let their finances get out of control. That is why the Yubox portal assures that having this tool can be a relief, but it must be used with conscience and responsibility.

There are a thousand ways to avoid going over the limit or losing the card, but they all lead to changing usage habits, because the more you spend, the greater the debt will be. Bank of America has drawn up a list of four recommendations to prevent catastrophic scenarios.

The use of cash has declined in the region and trends are towards credit cards and other digital payments. Thanks to: Kushki Photo: Courtesy of Kushki

Four habits to pay off debt faster

The well-known American bank recommends making and implementing a good plan to keep the credit card balance up to date. Likewise, four strategies are mentioned that will make it easier for the user to decide what to do to pay off their debts quickly.

Step by step and one debt at a time

Have more than one credit card It means there are more balances, so Bank of America recommends that you pay at least the minimum in each of these balances. Then you’ll want to focus on paying off your current balance gradually, one card at a time.

Pay a little more with each payment

You can review your card statement regularly and keep in mind that if you pay the minimum balance, it will take much longer to pay off the debt. Instead of, If more than the minimum is paid, the general interest rate will be lower. Whatever the issuing bank, it has a duty to show its customers the bank statement and see how the interest is applied.

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Increase the number of payments

Consolidating debts means combining several balances with a higher interest rate into one with a lower interest rate; This allows the debt to be paid more quickly without increasing the number of payments.

Put your expenses under the magnifying glass

The first is to classify monthly expenses in order of priority, for example: food, transportation, housing and entertainment. The credit card statement can be a very useful tool.

There are even many credit card issuers that separate expenses by category. It is recommended to take into account the areas where you can reduce expenses and the remaining money can be used to pay off debts.

(JO)